Archer Aviation surges 22% after Boeing deal for defense, autonomous flight

The Story in Brief

Archer Aviation shares surged 22.5% in pre-market trading on Monday after announcing a deal to buy three Boeing subsidiaries: Wisk Aero, SkyGrid and Insitu, Hindustan Times reports citing Investing.com and The New York Times. The acquisition transforms Archer from an electric aircraft developer into a diversified aviation and defence company with an established revenue base. Insitu, which builds unmanned aircraft for intelligence and surveillance, operates in 35 countries and has built over 3,500 aircraft systems. The three businesses together generate more than $200 million in annual revenue, compared with Archer's reported quarterly revenue of $1.6 million.

Boeing will receive a 16.5% stake in Archer and a board seat, with an option to buy up to $200 million more shares at preset prices. Boeing will also retain access to Wisk's autonomous flight technology for its own aircraft. Archer CEO Adam Goldstein called the deal a "watershed moment" for the company and the future of physical AI in aerospace and defence.